Buying raw land is much cheaper than buying a home and is probably the best strep you can take to ensure an independent future. Even in populated ares, good property can still be found at a reasonable price. In rural areas, the price can vary from four to five thousand dollars on acre for a smaller parcel and even less for a larger one. This article will teach you how to buy land in 6 easy steps:
Step 1 – Establish a budget
Before you start looking for the perfect place, it is important to work out the total amount that you can afford. Calculate how much money you have in hand and get a mortgage evaluation form a couple of banks. Getting pre-approved for a loan will give you insight about where you stand, thus reducing future risks. Many people overstretch their budget when buying a property and later they find it difficult to keep up with the payments. The total sum will have to cover the purchase price, taxes and transaction fees. You have to be very careful with this type of big scale business ideas, because you make big investments and you have to be almost certain that you’ll win them back. Purchasing land is like an investment, whether you want to use that land for something or not; this is mainly because real estate seldom devalues, unless there is some special circumstance. So be well prepared for your big scale business ideas, make thorough research and don’t hesitate to employ the opinions and advice of professionals to make sure.
Step 2 – Find areas that you like
Knowing how to buy land that you will not regret later involves finding ares that you really like and where you will feel comfortable living. Browse the internet for the areas available and the properties for sale so you get an idea of what you can afford. Visit the areas you are interested in and their surroundings. Keep a lookout for medical facilities, schools and shops located nearby. Mark a few properties you are interested in.
Step 3- Research the property
If you don’t know how to buy land and have no experience, it is a wise idea to research the property. Get the tax ID number and find out what was it last sold for, if it has a water supply and if it was once used for farming (there may be pesticides in the ground). Make sure you look for natural disasters that occurred in the past, such as wildfires and flooding. Call the courthouse in the country and find out is any development is planned in the area and what are the building codes. Waterfront properties sometimes require special permits and have some restrictions. Find out how much will it cost to get the necessary utilities and if it is cheaper to invest in wind turbines or solar panels.
Step 4 -Call the sellers
Once you have selected a few interesting properties, call the seller and schedule an appointment. Try to get as much information as possible over the phone. Don’t be shy to ask questions because it is you job to inspect the property thoroughly.
Step 5- Make an offer
When you decide on the land you want to buy, make an offer. Offer the lowest price possible so that the owner does not feel insulted, but you still leave room for negotiation. If the seller counteroffers, do the same so you will eventually meet in the middle. However, do not get attached so you can walk away if things don’t work out. There are many other parcels out there worth considering.
Step 6 – Conclude the sale
After your lawyer has made the necessary verifications, meet with the owner at a notary and sign the transfer deed. A representative from the bank and your lawyer will also be present. Make sure the lawyer or the notary register the transaction so you can avoid future complications.